The Regulations Of General Liability
General liability insurance for architects and engineers is used to protect architects and engineers from third party lawsuits that creep up. This can help to protect the individual and the industry from harm. The policy is used to protect the person from third party accidents that are created from the use of their product.
The situation is an accident and the policy is used to protect the person all the way to trial if that is the end result. The policy will state if going to court is one of the issues and if it is covered. Court cost will not effect the premium unless it is stated in the insurance. The costs for court proceedings can be very expensive for the client, but the policy is set up to protect the person and pay out to the third party.
The accident must be an accident and not an intentional act. There are rules and regulations that protect against this type of criminal behavior. This behavior is used by organized crime and others in the insurance companies to make a profit on crimes that are known. Both parties would make a profit off of this type of action and thus it had to be stopped.
Before policies would be setup in groups with self help policies. Groups would ban together to offer protection to each other due to the accidents caused by their item. The idea is to make sure that they and the industry will not be effected by their creation. The policy these days is supervised by several companies that are in the business to make profit and not self help anymore.
Each aspect of liability is calculated in order to offer the best protection for the person. The policy is dynamic in areas of general accidents and mistakes. It does not handle higher ranking issues unless determined in the policy. These incidents will be handled by the laws that are in that state or region. If the case goes to trial certain aspects will be covered by state law as well as policy regulations and rules.
Crime and intentional torts are protected under these types of laws to make sure that the insurance industry is protected by these types of crimes. The money is given to the third party and not the client that holds the policy. The idea is to make the situation where all parties walk away happy and without malice or issue.
The career of architects and engineers is protected because of this policy. It helps to keep the industry free from unwanted lawsuits that may hinder progress in that field. Without this type of protection, third party lawsuits would bring many in this career to their knees.